Elior: shares struggle after Moody's downgrade
(CercleFinance.com) - On Monday, Elior shares were one of the biggest fallers on the SBF 120 index after Moody's downgraded the group's credit rating.
Moody's announced on Friday evening that it had lowered its corporate family rating (CFR) on Elior from "B2" to "B3", still with a "negative" outlook.
Moody's justified this decision by the prospect of a sharper than initially expected deterioration in the company's profitability over the next 12 to 18 months, due to continuing inflationary pressures.
The agency says that its merger with Derichebourg Multiservices (DMS) should make a positive contribution to earnings, although this will not be enough to offset the negative trend expected for the current financial year.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
Moody's announced on Friday evening that it had lowered its corporate family rating (CFR) on Elior from "B2" to "B3", still with a "negative" outlook.
Moody's justified this decision by the prospect of a sharper than initially expected deterioration in the company's profitability over the next 12 to 18 months, due to continuing inflationary pressures.
The agency says that its merger with Derichebourg Multiservices (DMS) should make a positive contribution to earnings, although this will not be enough to offset the negative trend expected for the current financial year.
Copyright (c) 2023 CercleFinance.com. All rights reserved.